Karat Packaging (NASDAQ:KRT) Stock Price Down 5.4% – Here’s What Happened

Karat Packaging Inc. (NASDAQ:KRT)’s stock price fell 5.4% during trading on Thursday . The stock traded as low as $26.10 and last traded at $26.16. 21,286 shares traded hands during trading, a decline of 74% from the average session volume of 82,436 shares. The stock had previously closed at $27.66.

Wall Street Analysts Forecast Growth

Several brokerages recently weighed in on KRT. Lake Street Capital restated a “buy” rating and issued a $39.00 price objective on shares of Karat Packaging in a report on Friday, May 8th. Wall Street Zen lowered shares of Karat Packaging from a “buy” rating to a “hold” rating in a report on Sunday. Weiss Ratings reiterated a “hold (c+)” rating on shares of Karat Packaging in a research report on Thursday, January 22nd. Zacks Research downgraded Karat Packaging from a “strong-buy” rating to a “hold” rating in a research note on Tuesday, May 12th. Finally, Bank of America set a $24.00 price objective on Karat Packaging and gave the stock an “underperform” rating in a research note on Friday, March 13th. One equities research analyst has rated the stock with a Buy rating, two have assigned a Hold rating and one has assigned a Sell rating to the company’s stock. According to data from MarketBeat, Karat Packaging currently has a consensus rating of “Hold” and a consensus target price of $31.50.

Karat Packaging Stock Down 3.3%

The firm has a market capitalization of $534.16 million, a price-to-earnings ratio of 16.93, a P/E/G ratio of 1.21 and a beta of 0.93. The business’s 50-day moving average is $27.93 and its two-hundred day moving average is $25.14. The company has a debt-to-equity ratio of 0.15, a quick ratio of 1.15 and a current ratio of 2.29.

Karat Packaging (NASDAQ:KRT) last issued its quarterly earnings data on Thursday, May 7th. The company reported $0.34 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $0.32 by $0.02. Karat Packaging had a net margin of 6.61% and a return on equity of 19.87%. The firm had revenue of $116.95 million during the quarter, compared to analysts’ expectations of $112.98 million. On average, equities analysts anticipate that Karat Packaging Inc. will post 1.98 earnings per share for the current year.

Karat Packaging Announces Dividend

The firm also recently announced a quarterly dividend, which will be paid on Thursday, May 28th. Shareholders of record on Thursday, May 21st will be issued a dividend of $0.45 per share. The ex-dividend date is Thursday, May 21st. This represents a $1.80 annualized dividend and a yield of 6.7%. Karat Packaging’s payout ratio is currently 113.92%.

Institutional Investors Weigh In On Karat Packaging

Large investors have recently modified their holdings of the business. State of Alaska Department of Revenue bought a new position in shares of Karat Packaging during the 3rd quarter valued at about $27,000. Clearstead Advisors LLC grew its position in shares of Karat Packaging by 188.8% in the 4th quarter. Clearstead Advisors LLC now owns 1,493 shares of the company’s stock valued at $34,000 after purchasing an additional 976 shares during the period. CWM LLC increased its stake in Karat Packaging by 378.4% during the 3rd quarter. CWM LLC now owns 1,641 shares of the company’s stock worth $41,000 after purchasing an additional 1,298 shares in the last quarter. Quarry LP bought a new stake in Karat Packaging during the 3rd quarter worth approximately $70,000. Finally, Deutsche Bank AG raised its holdings in Karat Packaging by 142.8% during the 4th quarter. Deutsche Bank AG now owns 3,861 shares of the company’s stock worth $87,000 after buying an additional 2,271 shares during the period. 25.20% of the stock is currently owned by institutional investors.

About Karat Packaging

Karat Packaging Technologies, Inc (NASDAQ: KRT) is a U.S.-based provider of premium packaging solutions for consumer goods and industrial products. The company specializes in the design, manufacture and delivery of high-quality litho-laminated folding cartons, tubes and flexible packaging. Karat Packaging operates an integrated production model that combines prepress, printing, converting and finishing capabilities to support the branding and shelf-appeal needs of its customers.

The company serves a diverse range of end markets, including food and beverage, confectionery, health and beauty, pharmaceuticals, specialty chemicals and promotional packaging.